Question: What additional considerations might factor into the decision making? ng EX 25-9 Machine replacement decision OBJ.1 A company is considering replacing an old piece of
What additional considerations might factor into the decision making? ng EX 25-9 Machine replacement decision OBJ.1 A company is considering replacing an old piece of machinery, which cost $168,000 and has $88,000 of accumulated depreciation to date, with a new machine that has a purchase price of $107,900. The old machine could be sold for $90,100. The annual variable pro- duction costs associated with the old machine are estimated to be $11,200 per year for 8 years. The annual variable production costs for the new machine are estimated to be $8,000 per year for 8 years. a. Prepare a differential analysis dated April 29 to determine whether to Continue with Old Machine (Alternative 1) or Replace Old Machine (Alternative 2). b. What is the sunk cost in this situation? df nominipline cotob 33
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